Australian Finance Podcast Property Q&A: 16 years later I've lost money on my apartment, invest in Pearler or offset? Plus, how do mortgage brokers get paid?
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Mar 4, 2024 Experts discuss why apartments can be bad investments, what to do with a dud property, and how mortgage brokers are paid. They also touch on maximizing returns with equity, personalizing financial decisions, and exploring free educational resources for better money management.
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Apartment Loss Story
- Chris describes a 2008 apartment bought for $400k that now values $380k after 16 years and heavy repayments.
- He uses this to illustrate common apartment investment failures and opportunity cost from wrong asset choice.
Prioritise Paying Home Debt
- Do favour keeping investment loans interest-only and prioritise paying down non-deductible home debt.
- Move equity from poor investments into your home loan to reduce non-deductible interest and improve financial security.
Supply Cycles Flatten Apartment Prices
- Apartment booms attract developer supply which can reverse price gains when supply surges.
- That supply-driven cycle often causes long periods of flat prices for high-density apartments.